ESKOM South Africa CSP Augmentation Conference Case B2 - Spain

1. ESKOM South Africa CSP Augmentation Conference Case B2 - Spain August 2013

2. Puerto Errado 2 Project Overview Project Profile and milestones Puerto Errado 2 Milestones • Dec 2008: Due Diligence of EBL on PE1 • June 2009: Signing Investment Agreement • April 2010: Start of Site Activities • April 2011: Financial Close • April 2012: Completion of Construction • Aug 2012: Start of Operations • June 2013: Final Acceptance Tests confidential

3. Puerto Errado 2 Project Overview Project Stakeholders Lenders Advisors Owner’s Technical Advisor Owner (5 Swiss utilities) 85 % Lenders Off-taker Project Company PE2 O&M Contractor EPC Contractor confidential

4. Lessons learnt I: Bankability is key for the project development strategy • Stepwise commercialization of technology • Demonstrator -> Small scale project -> Mid/large scale projects • Demonstration and testing in close cooperation with EPC contractors, technical advisors, customers and lenders confidential

5. Bankability is key for the project development strategy Technology Overview and Development History Steam Parameters Solar Field Base Design (excl. Receiver) Receiver Design Heat Transfer Fluid Target Application • Enhanced Oil Recovery (EOR) • Other low to medium temperature process heat Up to 310°C(1) Up to 100bar Nova-1 Non-vacuum Tube Receiver Water Nova-1 (direct saturated steam generation) • Integrated Solar Combined Cycle • (ISCC) • Augmentation • Storable & dispatchable power generation • Combined Heat & Power • (CHP) Up to 550°C(1) Up to 150bar Nova-1 Vacuum Tube Receiver Water Supernova (direct superheated steam generation) • Storable & dispatchable power generation at minimized cost • Combined Heat & Power • (CHP) Nova-1 Vacuum Tube Receiver Molten Salt DMS(direct molten salt) Up to 550°C(1) No pressure limitation(2) 2005 2009 2011 2013 2014 Product Testing and Development Commercialisation Nova-1 Commercialisation Supernova Commercialisation DMS • Current temperature limit of absorber tube coating specified by suppliers • Water / steam cycle pressure not relevant for solar field design pressure due independent systems confidential

6. Bankability is key for the project development strategy Supernova Demonstator in operation since 2011DMS Demonstrator will be built in 2013 Puerto Errado 1 (PE1) • 9MWth/1.4MWel test plant • In operation since 2009 • Mirror surface of 18,000m² Puerto Errado 2 (PE2) • 30MWel commercial plant • In operation since 2012: • Mirror surface of 300,000m² Supernova Demonstrator • In operation since 2011: • Demonstrates superheated steam generation at 550°C DMS Demonstrator • Realization scheduled for 2013 • Will demonstrate direct molten salt as heat transfer fluid confidential

7. Bankability is key for the project development strategy Live steam Augmentation with Supernova technologySmall scale project award expected for September 2013 confidential

8. Bankability is key for the project development strategy Direct molten salt collector with 2 tank storagePilot plant realization scheduled for 2014 confidential

9. Lessons learnt II: Focus on core competences • Novatec´s various roles in the PE2 realization required significant specialized resources and financial contribution • Focus in the future on the areas of real strength and leave other aspects to various Business Partners. • Establishment as a turn-key solarfield supplier including the operation and maintenance of the solarfield confidential

10. Focus on core competencesNovatec Solar’s share of PE2´s value chain Engineering, Procurement and Construction (EPC) Project Development Solar Field Manufacturing Turnkey Solar Field Delivery Balance of Plant Operation & Maintenance Project Ownership (15%) Receiver Fabrication Project and Site Management Balance of Plant O & M Solar field Primary Reflector Fabrication Assembly O & M Balance of Plant Key Materials and Components Commissioning Standard Raw Materials Novatec Solar Core activities Customers/Partners/Others confidential

11. Focus on core competencesNovatec Solar’s Future Activities along the Value Chain Engineering, Procurement and Construction (EPC) Project Development Solar Field Manufacturing Turnkey Solar Field Delivery Balance of Plant & Storage System Operation & Maintenance Project Ownership Receiver Fabrication Project and Site Management Storage System O & M Solar field Primary Reflector Fabrication Assembly Balance of Plant O & M Balance of Plant Key Materials and Components Commissioning Standard Raw Materials Novatec Solar Core activities Novatec Solar Potential Activities Customers/Partners/Others confidential

12. Lessons learnt III: Focus on real markets • Real CSP market of Spain are considered to be moderate only • A special CSP tariff regime provided an attractive framework for long term investments and created an quite artificial market • Later on announced tariff reductions are a threat to the economics of the existing plants and perspective of future investments • Future focus on the most promising regions and markets based on a number of criteria, like: • Suitable DNI data; • Variety of industrial and power applications; and • Steam and/or power demand increase. confidential

13. Focus on real markets Middle East, Chile, Australia, South Africa 1 3 Middle Eastern and North African (MENA) Australia has an immediate opportunity to build a 30MWel solar-gas hybrid plant • The region has high solar irradiance and access to finance capital • The Saudi Arabian Government has submitted a white paper for a 54GW renewable energy programme by 2032 • Significant oil fired gas turbine capacity installed • Major market for Enhanced oil recovery (EOR) • Several CSP projects in the region are in operation or under construction • Novatec Solar has been awarded to execute a FEED study on EOR • Australia has excellent solar resources and recent positive developments in the CSP sector are promoting growth • Novatec Solar has been supported with RATCH - Australia by the Australia Renewable Energy Agency (ARENA) to develop a 30MWel solar-gas hybrid plant 2 Latin America and especially Chile represent an area of significant growth in CSP 1 1 • Chile has the world’s best solar resource with annual DNI in the north in excess of 2700kWh/m2/year • Chile has set up a legal framework for utilities to progressively have a 10% share of renewables by 2024 • Award for small scale augmentation project expected in September 2013 • Expansion from Chile to other Latin American Countries like Brazil, Mexico and Peru 2 4 3 Appropriate for solar thermal power plants: Excellent Very good Good Not suitable Novatec Solar Project Locations confidential

14. Focus on real markets South Africa as Target Market 4 South Africa has a considerable project pipeline • Excellent Solar Resources (DNI> 2900 kWh / m2) in some regions • South Africa has been exploring solar power generation for some time and set-up the 400MWel CSP program REIPPP • Established local economy and infrastructure with big potential of local sourcing • Green field opportunities in Power Generation as well as brown field potential in Solar Augmentation projects • Total installed capacity of coal fired plants: 37,681 MW offering brown field potential in Solar Augmentation projects Source: SolarGIS Coal fired power station confidential

15. Puerto Errado 1, Spain 2009 Liddell solar augmentation, Australia 2012 Puerto Errado 2, Spain 2012